While most of your comments might be valid about them, I don't think the West Island Jalbert dealership failed because it was poorly located. I think the WI is a great market for BMW and the new dealership should do just fine, IF prior mistakes are not repeated.
Keep in mind that Jalbert had two dealerships - one in Kirkland and one in Quebec City. Notwithstanding the legal fight that was going on between Denis Jalbert & BMW Canada since 1996, they still had to operate two dealerships in those quite lucrative markets. Their bad reputation might have been because of the legal procedures, but I believe it was mainly because of the incredibly bad customer experience, at both dealerships. How many stories have I heard from Quebec City people who would go out of their way to go buy a BMW in Trois Rivieres to avoid the snobby/insulting/etc CA's and/or SA's? You just can't play that game in the Vieille Capitale.
I've heard similar stories about Kirkland's dealership to a lesser extent, but I wouldn't be surprised if the same situation was going on over there. Keep in mind that I am a mere observer and I am posting this because of what I've heard. But don't you think that if BMW wanted to terminate both dealership contracts, it *might* have been because of bad customer ratings? Granted, there might be a bigger underlying cause ($$$) but there's gotta be another catch...
IMHO, you don't shut down Quebec City's only BMW dealership just because there's some misunderstanding in a contract... don't ask yourself why there are so much Audi's & MB's in Quebec City, and why Que-Bourg's owner opened Audi Ste-Foy just 15 mins away.
I might be totally wrong, but that's how I see things (and I know a LOT of people who agree with what I'm saying here).